Jones Group swings to 1Q profit; lowers forecast
New York — The Jones Group Inc. returned to a profit in the first quarter, but sales were hampered by unseasonably cool weather. The company said net income for the three months ended April 6, after paying preferred dividends, totaled $500,000. That compares with a loss of $1.2 million in the year-ago period.
Revenues for the first quarter of 2013 were almost $1.1 billion, up from $936 million for the same period last year. Jones Group CEO Wesley R. Card said that weather and other factors impacted the business both domestically and internationally.
"First quarter revenues were in line with our revised expectations, with the jeanswear business registering the largest improvement in operating results,” Card said. "For other areas of the business, the cold weather negatively impacted seasonal spring product sales and, accordingly, gross margins for the first quarter were approximately 210 basis points below last year.”
Jones Group lowered its full-year revenue forecast from a range of $3.9 billion to $4.1 billion, to a range of $3.8 billion to $3.95 billion. Wall Street analysts had been predicting full-year revenues of $3.9 billion.
“We expect continued margin pressure in sportswear in the second quarter, as we clear spring merchandise in anticipation of our new and refocused product offerings for fall," Card said.
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CVS Q2 profit jumps 23%
Woonsocket, R.I. — CVS Caremark Corp.’s first-quarter earnings rose a better-than-expected 23% as new generic drugs and demand for flu medications helped the company’s profitability. The chain narrowed its 2013 guidance to reflect higher-than-expected performance.
For the first quarter, CVS earned $956 million, up from $776 million in last year’s quarter.
Companywide revenue slipped 0.1% to $30.76 billion, but exceeded the $30.36 billion that Wall Street expected.
"I’m very pleased with our strong first quarter results,” said CVS president and CEO Larry Merlo. “As expected, the influx of new generic drugs was a key driver across the enterprise, resulting in solid gross margin expansion as well as significant growth in operating profit and earnings.”
During the quarter, CVS opened 37 drug stores and closed nine stores, while also relocating 15 units. As of March 31, 2013, the company operated 7,596 locations in 45 states, the District of Columbia, Puerto Rico and Brazil. These locations included 7,531 retail drug stores, 18 onsite pharmacies, 31 retail specialty pharmacy stores, 12 specialty mail-order pharmacies and four mail-order pharmacies.
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Big 5 Sporting Goods has big first quarter; 15 to 20 new stores planned
El Segundo, Calif. — Big 5 Sporting Goods Corp. reported upticks in net income, sales and same store sales for first quarter fiscal 2013. Net income grew from $156,000 to $7.5 million.
Net sales were $246.5 million, up from $218.3 million a year earlier, while same-store sales rose 10.5%. First quarter sales improved despite the negative impact of the calendar shift of the Easter holiday, when the retailer’s stores are closed.
For the second quarter of fiscal 2013, Big 5 is anticipating a same store sales increase in the positive mid-single-digit range, which takes the positive impact of moving Easter from the second to the first quarter into account.
"We are pleased to deliver a quarter of very strong earnings growth, driven by a double-digit increase in same store sales, improvements in customer traffic and average sale and expansion of merchandise and operating margins," said Big 5 Sporting Foods chairman, president and CEO Steven G. Miller. "Our operating results significantly exceeded the upper end of our guidance range issued in late February as a result of a stronger than anticipated performance during our March period. Our positive sales trends have continued into the second quarter and we feel well positioned to deliver strong results as we move through the spring and into the summer season."
The retailer opened one new store and closed one store during the first quarter as part of a relocation program that began in fiscal 2012. It ended the quarter with 414 stores. Big 5 expects to open two new stores during the second quarter and a net of 15-20 new stores during the entire fiscal year.